06-992r
HRA RESOLUTION NO. 992
APPROVING AMENDMENT TO SETTLEMENT OF EMINENT DOMAIN
PROCEEDING
WHEREAS, the Board of Commissioners is the official governing body of the
Housing and Redevelopment Authority in and for the City of Richfield ("HRA"); and
WHEREAS, on November 21, 2005, by Resolution No. 958 the Board of
Commissioners of the HRA authorized and directed the acquisition of the real estate
which is legally described in Exhibit A attached hereto ("Subject Property") by use of
eminent domain proceedings; and
WHEREAS, counsel for the HRA filed a petition in the district court for Hennepin
County on December 7, 2005 to acquire the Subject Property by eminent domain
proceedings and scheduled a hearing before the judge to whom the matter had been
assigned for February 6, 2006; and
WHEREAS, counsel for the owners of the Subject Property (listed on Exhibit B,
hereafter "Owners") advised counsel for the HRA that the Owners objected to the taking
of the Subject Property so that the attorneys asked the court to schedule a trial in district
court for consideration of whether there is a public purpose and a necessity for the
taking of the Subject Property; and
WHEREAS, on February 27,2006, the HRA approved a mediated settlement
agreement between the HRA and the Owners under which the HRA paid a total of
$645,000 to the Owners and deposited $30,000 with the District Court Administrator to
be held until after the Owners vacate the Subject Property and the HRA agreed that the
Owners could occupy the Subject Property until November 1, 2006, at the Owners'
option; and
WHEREAS, the HRA may incur the obligation to pay the redeveloper of the
Subject Property a significant amount for extraordinary damages if the HRA is not able
to deliver possession of the Subject Property until after November 1, 2006; and
WHEREAS, HRA staff have negotiated an amendment of the Stipulation of Final
Settlement under which HRA will have the option to advance the date by which Owners
will be obliged to vacate the Subject Property to on or before September 30,2006,
which would be financially beneficial to the HRA.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF RICHFIELD IN REGULAR MEETING ASSEMBLED, that the
First Amended Stipulation of Final Settlement attached hereto as Exhibit B is hereby
approved and the Executive Director and the Chair of the HRA are authorized to
execute said agreement and take all steps necessary in accordance with said
agreement,
Adopted by the Housing and Redevelopment authority in and for the City of Richfield,
Minnesota this 25th day of July, 2006. " /J I /
.~tff. ~
Suza M. Sandahl, Chair
A~ov-. CO~
Donna Drummond, Secretary
EXHIBIT A
Leqal Description of Subiect Property
6300 Cedar Avenue South 26-028-24-11-0061
Richfield, MN
The North 33 feet of Lot 4, Block 3;
All of Lot 5, Block 3; and the South 17
feet of Lot 6, Block 3, all in "Iverson's
Third Addition," Hennepin County,
Minnesota.
(Abstract property)
6320 Cedar Avenue South 26-028-24-11-0060
Richfield, MN
The South 67 feet of Lot 4, Block 3,
"Iverson's Third Addition," Hennepin
County, Minnesota.
(Abstract property)
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Exhibit B
Case Type: Condemnation
STATE OF MINNESOTA
DISTRICT COURT
COUNTY OF HENNEPIN
FOURTH JUDICIAL DISTRICT
The Housing and Redevelopment Authority
in and for the City of Richfield, a public body
corporate and politic under Minnesota law,
Court File No. 27-CV-05-18463
Petitioner,
vs.
Marvin F. Johnson and Deborah H.
Johnson, as joint tenants; Richfield Bank & ,
Trust Co., by merger now known as M&I
Bank; State Farm Auto Insurance, aka State
Farm Mutual Auto Insurance Company;
Nancy K. Olson; Hy's Loan Office,
Incorporated, a Minnesota corporation;
Mutual Service Casualty Insurance, by
merger now known as Country Mutual
Insurance Company, an Illinois corporation;
Centerpoint Energy Resource Corp., a
Delaware corporation, dba Minnegasco;
Northern States Power Company, a
Minnesota corporation, dba NSP; U.S. West
now known as Qwest Corporation, a
Colorado corporation; Marvin F. Johnson,
dba Market Research Associates; AIR
CARE-GO, INC., a Minnesota corporation;
Iversons, Inc., a Minnesota corporation; City
of Richfield; County of Hennepin; all other
parties unknown, together with unknown
heirs or devisees and spouses, if any,
FIRST AMENDED
STIPULATION
OF FINAL SETTLEMENT
Respondents
THIS AGREEMENT is entered into this _ day of July, 2006, by and among The
Housing and Redevelopment Authority in and for the City of Richfield, a public body
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corporate and politic under Minnesota law, located at 6700 Portland Avenue, Richfield,
Minnesota 55423, Petitioner herein ("HRA") and Respondents Marvin and Deborah
Johnson and AIR CARE-GO, INC. (collectively "Objecting Respondents" or "Johnson"),
located at 6300 Cedar Avenue South, Richfield, Minnesota.
I. REelT ALS
1.01. HRA commenced this proceeding to acquire the real estate located at 6300
and 6320 Cedar Avenue, Richfield, MN, which is legally described on Exhibit A attached
hereto and incorporated herein ("Subject Property").
1.02. Pursuant to the Stipulation of Final Settlement in the above captioned
matter, dated March 21, 2006 ("Original Stipulation of Final Settlement"), the HRA and
Johnson agreed upon the total amount of damages to be paid to Johnson in final
settlement of all of Johnson's claims as a result of the taking of the Subject Property by
HRA (except relocation benefits which will be separately negotiated and paid) and that
Johnson would deliver possession of the Subject Property to HRA by November 1,
2006.
1.03. Pursuant to the Stipulation of Final Settlement, Johnsons delivered a deed
for the Subject Property to the HRA, dated April 3, 2006, and pursuant to the Findings of
Fact, Conclusions of Law and Order Transferring Title and Possession in this matter
filed March 28, 2006 in the office of the District Court Administrator and the Receipt of
the District Court Administrator filed April 26, 2006, HRA deposited the Deposit with the
District Court Administrator.
1.04. HRA has requested that Johnson agree to amend the Stipulation of Final
Settlement to give the HRA the option to require Johnson to deliver possession of the
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Subject Property to HRA on or before September 30, 2006. The parties intend that this
First Amended Stipulation of Final Settlement describe the terms under which Johnson
will agree to modify the Stipulation of Final Settlement as requested by HRA.
1.05. As modified, this agreement shall constitute the Stipulation of Final
Settlement by, between and among the parties.
II. AGREEMENT
NOW, THEREFORE, in consideration of the premises, their mutual promises and
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:
2.01. Incorporation of Recitals. The foregoing recitals are made a part of this
Stipulation.
2.02. Waiver of Obiections. Subject to performance by HRA under this
Agreement, Objecting Respondents each waive any and all objections which they may
otherwise have been entitled to interpose in this proceeding to:
(a) The jurisdiction of this Court both as to the subject matter and as to
them personally;
(b) The public purpose and necessity of the HRA's taking of the
Subject Property; and
(c) The legality of the process followed by the HRA in creation of the
Redevelopment Plan and the Redevelopment Project, the adoption of the
eminent domain resolution and all other proceedings relating to the acquisition by
the HRA of the Subject Property; and
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(d) The requirements of Minn. Stat. S 117.042 that the HRA as
condemning authority give Objecting Respondents at least 90 days notice prior to
the transfer of title and possession of the Subject Property to the HRA (subject to
the provisions of this Agreement).
2.03. Entry of Orders. Subject to performance by HRA under this Agreement,
Objecting Respondents, in accordance with the terms stated herein, also stipulate and
agree to the issuance by the above Court of:
(a) Findings of Fact, Conclusions of Law and Order Approving Petition
and Appointing Condemnation Commissioners ("Order Approving Petition") in the
above matter in the form attached hereto as Exhibit C; and
(b) Findings of Fact, Conclusions of Law and Order Authorizing
Transfer of Title and Possession ("Quick Take Order") in this matter in the form
attached hereto as Exhibit D.
2.04. Mediated Settlement Aqreement. The provisions of the Mediated
Settlement Agreement between the parties which is attached hereto as Exhibit Bare
hereby incorporated herein by reference.
2.05. Total Damaqes. HRA and Johnson agree that, provided Johnson provides
HRA with marketable title to the Subject Property, HRA shall pay Johnson total damages
due to the taking of the Subject Property and to extinguish all claims of Johnson and all
other respondents named herein of $675,000 C'Settlement Amount"), including
reimbursement of appraisal fees and interest (not including relocation benefits) as follows:
(a) On or before March 31, 2006, the HRA will deposit $30,000 (the
"Deposit") with the District Court Administrator.
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(b) On or before March 31, 2006, the HRA will pay Johnson $645,000
("Settlement Sum") which is agreed to be fair market value and just compensation
due and owing for land, building and fixtures in the Subject Property, pursuant to
this proceeding.
2.05A.lnducement Deposit. If HRA elects to advance the date by which
Objecting Respondents are obliged to vacate the Subject Property from on or before
November 1, 2006 to on or before September 30,2006, the HRA shall deposit $100,000
(the "Inducement Deposit") with the District Court Administrator on or before September
1, 2006, which amount shall remain on deposit as additional security to assure vacation
of the Subject Property by Objecting Respondents as provided in Sections 2.09 through
2.13 of this Agreement. In the event HRA makes the Inducement Deposit on or before
September 1, 2006, Objecting Respondents shall be obliged to vacate the Subject
Property on or before September 30, 2006. In the event HRA fails to make the
Inducement Deposit on or before September 1, 2006, Objecting Responden~s shall be
obliged to vacate the Subject Property on or before November 1, 2006 as provided in
the Original Stipulation of Final Settlement.
2.06. Stipulation to Commissioners Award. Petitioner and Objecting
Respondents agree to the issuance by the Court Appointed Commissioners herein of an
award of damages in the total amount of $675,000 which is payable entirely to
Objecting Respondents, as their Interests may appear, and with $0 payable to all other
respondents (except for any amount which may be payable to Hennepin County for real
estate taxes payable in 2005 and previous years or to City of Richfield for special
assessments levied or pending as of February 21, 2006).
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2.07. Entry Upon Property. Petitioner, its agents and assigns, shall have the
right upon reasonable notice at any time following execution of this Agreement and prior
to delivery of possession of the Subject Property by Objecting Respondents to HRA to
enter upon the Subject Property for the purpose of making inspections, taking soil test
and borings, making surveys, and performing other investigative work by HRA's
employees and agents.
2.08. No SubleasinQ. Objecting Respondents agree that they will not sublease
or rerent the Subject Property to any third party after execution of this Agreement and
will hold the HRA harmless, defend and indemnify the HRA against the claims of any
tenant not named in Exhibit A attached hereto for relocation benefits pursuant to federal
or state law.
2.09. Continued Possession. Objecting Respondents may continue to occupy
the Subject Property until September 30, 2006, if HRA makes the Inducement Deposit
(or November 1, 2006, if HRA does not make the Inducement Deposit) provided that
they:
(a) Maintain existing policies of comprehensive general public liability
insurance covering all acts of AIR CARE-GO, INC. and all of its subcontractors,
employees, agents, representatives and guests on or about the Subject Property.
All such insurance policies shall name the HRA as additional insured;
(b) Maintain existing policies of automobile liability insurance (including
owned, non-owned and hired or otherwise employed vehicles);
(c) Pay the cost of all sewer, water, electric, natural gas, telephone,
garbage collection and disposal, cable television and other utility services which
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are provided to the Subject Property during the period of AIR CARE-GO's
occupancy of the Subject Property (collectively, "Utility Service"). However, AIR
CARE-GO, INC. shall not have the duty to pay real estate taxes or special
assessments during the Possession Period;
(d) Pay the cost of any repairs which AIR CARE-GO, INC. in its sole
discretion deems necessary during its possession of the Subject Property
(notwithstanding the foregoing, if the HRA reasonably determines that AIR
CARE-GO's failure to undertake repairs has caused the Subject Property, to
become a hazard to public health or safety or a nuisance, the HRA and City shall
not be precluded from exercising the City's statutory right to abate the nuisance
or otherwise address the problem and if the City elects to do so, the HRA or City
shall have the right to recover from AIR CARE-GO, INC. the reasonable costs
incurred by the HRA or City in undertaking such repairs as the City in its
reasonable discretion deems necessary to protect the public health or safety or
to abate the nuisance) ("Required Repairs");
(e) Removes all personal property, garbage and debris from the
Subject Property prior to vacation of the Subject Property by AIR CARE-GO,
INC.;
(f) Pay HRA a monthly rent ("Rent") of $200 payable on or before the
first day of each month following payment by HRA to Objecting Respondent of
the Settlement Amount and on the first day of each month thereafter until the
earlier of the following: (i) AIR CARE-GO, INC. delivers possession of the
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Subject Property to HRA, or (ii) September 30, 2006 (or November 1, 2006 if the
HRA does not make the Inducement Deposit).
2.10. Order Compellinq Delivery of Possession. In the event of Objecting
Respondents' failure to timely vacate the Subject Property, upon five days' written
notice by HRA to Objecting Respondents in accordance with this Agreement, HRA shall
be entitled to seek an order of the District Court pursuant to Minn. Stat. S 117.043
compelling delivery of possession of the Subject Property and otherwise enforcing the
provisions of this Agreement, which order may provide an award of attorneys fees,
costs and disbursements in favor of HRA.
2.11. Liquidated Damaqes. Subject to its performance in accordance with this
Agreement, AIR CARE-GO, INC. may occupy the Subject Property for the full
Possession Period, from the date of this Agreement until September 30, 2006 (or
November 1, 2006 if the HRA does not make the Inducement Deposit). If AIR CARE-
GO, INC. fails to vacate the Subject Property on or before September 30, 2006 (or
November 1, 2006 if the HRA does not make the Inducement Deposit) and to deliver
possession thereof to HRA, AIR CARE-GO, INC. shall be in default under this
Agreement and shall owe the HRA liquidated damages in the amount of $1 ,000 for each
day thereafter which shall elapse prior to AIR CARE-GO, Inc.'s vacation of the Subject
Property, subject to the limits of the Deposit including accrued interest ("Liquidated
Damages").
2.12. Payments From Deposit. . If and to the extent that AIR CARE-GO, INC. fails
to pay the cost of Utility Services, Required Repairs, Rent, Liquidated Damages or other
amounts due from AIR CARE-GO, INC. to HRA pursuant to this Agreement which are
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attributable to AIR CARE-GO, INC.'s occupancy of the Subject Property after the Deposit,
upon the affidavit of counsel for the HRA, the District Court Administrator shall disburse
such amounts and the costs, disbursements and reasonable attorney fees incurred by the
HRA in recovering such amounts to the HRA from the Security Deposit and the
Inducement Deposit. Upon payment by AIR CARE-GO, Inc. of the cost of Utility Services,
Required Repairs, Rent, Liquidated Damages, or other amounts due from AIR CARE -
GO, Inc. to HRA pursuant to AIR CARE-GO, Inc.'s occupancy of the Subject Property after
the Deposit, and disbursement to HRA of any costs, disbursements and reasonable
attorney fees incurred by the HRA in recovering such amounts, the remainder of the
Deposit and Inducement Deposit, and accrued interest thereon shall be disbursed to
Johnsons. In such event, Counsel for Johnsons and HRA shall stipulate to an order of
the Court directing such disbursement.
2.13. Indemnitv. AIR CARE-GO, INC. agrees that it will defend, indemnify and
hold the HRA harmless against any and all claims against HRA relating to the Subject
Property arising from the acts of Objecting Respondents (or any thereof), so long as AIR
CARE-GO, INC. is permitted to occupy the Subject Property in accordance with the
provisions of this Agreement.
2.14. Continqencv. This Agreement is contingent upon (a) execution of this
Agreement by all parties; (b) the Court's issuance of the Order Approving Petition; and (c)
the Court's issuance of the Order Authorizing of Title and Possession.
2.15. Effective Date. The effective date of this Agreement shall be the date of its
execution by the last party to execute this Agreement.
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2.16. Notices. All notices, demands and requests required or permitted to be
given under this Agreement shall be in writing, and shall be personally delivered,
deposited in U.S. Mail, postage paid, registered or certified, return receipt requested, or
deposited prepaid for overnight delivery by a reputable overnight courier service, in any
case addressed as follows:
If to JOHNSON:
Marvin F. Johnson and Deborah H. Johnson
6300 Cedar Avenue
Richfield, MN 55423
With a copy to:
Howard Roston, Esq.
Malkerson, Gilliland, Martin LLP
1900 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402-4511
If to HRA:
Richfield HRA
Attention: Bruce Palmborg
6700 Portland Avenue So.
Richfield, MN 55423
With a copy to:
Robert J. Lindall, Esq.
Kennedy & Graven, Chartered
470 US Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
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If to AIR CARE-GO, INC.: AIR CARE-GO., INC.
Attn: Marvin F. Johnson, President
6300 Cedar Avenue
Richfield, MN 55423
With a copy to:
Howard Roston, Esq.
Malkerson, Gilliland, Martin LLP
1900 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402-4511
Each party may change its address for notice hereunder by notice given in accordance
with the provisions hereof at least ten days prior to the effective date of the address
change. Notice shall be deemed given upon the earlier of personal delivery, two days
after the date postmarked, two days after depositing with such courier for delivery or upon
the refusal to accept such service.
2.17. Other Terms. This Agreement shall be governed by the substantive law of
the State of Minnesota. This Agreement may be executed in counterparts, each of
which shall be deemed an original but which together shall constitute one and the same
agreement.
2.18. Nondisparaqement. Each of the parties agree that the terms and
conditions of this Agreement are fair and have been negotiated in good faith and that so
long as they receive the bargained for considerations promised to them under this
Agreement they will refrain from publication of oral or written statements disparaging the
actions of other parties hereto in relation to the HRA's acquisition of the Subject
Property.
2.19. Waiver of Claims. In consideration for the payment by HRA of the
Settlement Amount, Johnson waives any and all claims it may have against HRA in
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connection with HRA's acquisition of the Subject Property, including but not limited to
damages, interest, attorneys fees, appraisal fees, costs and disbursements to which
Johnson may otherwise be entitled or claim to be entitled, but not including relocation
benefits.
2.20. Riqht to Further Proceedinqs. HRA and Johnson hereby waive all further
hearings, proceedings and appeals in this matter except as either may elect in order to
enforce or carry out the provisions of this Agreement.
2.21. Deposit. The parties agree that if Petitioner is not otherwise satisfied that
Johnson has provided marketable title to the Subject Property as respects the possible
interests of parties named in Exhibit A, the Deposit shall remain on deposit with the
District Court Administrator until the claims, if any of such respondents in the Subject
Property are determined. If Petitioner is not satisfied with the evidence of title provided by
Objecting Respondents, Petitioner shall move the Court for an order with respect to other
respondents named in Exhibit A pursuant to Minn. Stat. S 117.042 to acquire those
interests and Objecting Respondents will appear and support an order determining that
said other respondents have no interest in the Subject Property.
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OWNER
By:
Marvin F. Johnson
And
by:
Deborah H. Johnson
AIR CARE-GO, INC
By:
Marvin F. Johnson, its President
MALKERSON, GILLILAND & MARTIN, LLP
By:
Howard Roston, #260460
1900 U.S. Bank Plaza
220 South Sixth Street
Minneapolis, MN 55402
(612) 455-6655
ATTORNEYS FOR OBJECTING
RESPONDENTS
The Housing and Redevelopment
Authority in and for the City of Richfield
By:
Steven L. Devich, Executive
Director
KENNEDY & GRAVEN, CHARTERED
By:
Robert J. lindaU, #63277
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9219
ATTORNEYS FOR THE HRA OF
RICHFIELD
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EXHIBIT A
Parcel NO.1 (Abstract Property) (PID No. 26-028-24-11-0061)
Property Address: 6300 Cedar Avenue, Richfield, MN 55423
Leoal Description of Subiect Property:
All that part of Lot 4, Block 3, lying Northerly of a line drawn parallel with
and 33 feet South of the North line of said Lot 4; All of Lot 5, Block 3, and
the South 17 feet of Lot 6, Block 3, all in "Iverson's Third Addition",
according to the recorded plat thereof, and situate in Hennepin County,
Minnesota.
Together with abutting streets and alleys, vacated and to be vacated,
accruing thereto upon vacation.
Subject to drainage, utility and street easements as shown and dedicated on the
recorded plat.
Subject to easements of record in favor of City of Richfield, if any.
Description of Takinos: The above described property, in fee simple.
A. Interests Being Acquired
Name Nature of Interest
Marvin F. Johnson and Deborah H. Fee owner
Johnson, as joint tenants
Richfield Bank & Trust Co., by merger Mortgagee
now known as M&I Bank
State Farm Auto Insurance, aka State Possible holder of an interest pursuant to
Farm Mutual Auto Insurance Company judgment against Deborah Johnson
acquired in Case No. OCT J 96-11773.
Nancy K. Olson Possible holder of an interest pursuant to
judgment against Debra Johnson acquired
in Case No. DCPD 96-12367.
Hy's Loan Office, Incorporated, a Possible holder of an interest pursuant to
Minnesota corporation judgment against Deborah Johnson
acquired in Case No. OCT J 97-10977.
Mutual Service Casualty Insurance Possible holder of an interest pursuant to
Company, by merger now known as judgment against Debra Johnson acquired
Country Mutual Insurance Company, an in Case No. OCT J 0018075.
Illinois corporation
A-I
Name Nature of Interest
Centerpoint Energy Resource Corp., a Possible holder of an interest pursuant to
Delaware corporation, dba Minnegasco Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
Northern States Power Company, a Possible holder of an interest pursuant to
Minnesota corporation, dba NSP Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
U.S. West now known as Qwest Possible holder of an interest pursuant to
Corporation, a Colorado Corporation Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
Marvin F. Johnson, dba Tenant
Market Research Associates
AIR CARE-GO, INC., Tenant
a Minnesota corporation
City of Richfield Special Assessments and Easements, if
any.
County of Hennepin Real Estate Taxes
All other parties unknown, together with Any right, title or interest in the Subject
unknown heirs or devisees and spouses, Property
if any
A-2
Parcel NO.2 (Abstract Property) (PID No. 26-028-24-11-0060)
Property Address: 6320 Cedar Avenue, Richfield, MN 55423
Leqal Description of Subiect Property:
The South 67 feet of Lot 4, Block 3, "Iverson's Third Addition", according
to the recorded plat thereof, and situate in Hennepin County, Minnesota.
Together with abutting streets and alleys, vacated and to be vacated,
accruing thereto upon vacation.
Subject to drainage, utility and street easements as shown and dedicated on the
recorded plat.
Subject to easements of record in favor of City of Richfield, if any.
Description of Takinqs: The above described property, in fee simple.
A. Interests Being Acquired
Name Nature of Interest
Marvin F. Johnson and Deborah H. Fee owner
Johnson, as joint tenants
Richfield Bank & Trust Co., by merger Mortgagee
now known as M&I Bank
State Farm Auto Insurance, aka State Possible holder of an interest pursuant to
Farm Mutual Auto Insurance Company judgment against Deborah Johnson
acquired in Case No. DCT J 96-11773.
Nancy K. Olson Possible holder of an interest pursuant to
judgment against Debra Johnson acquired
in Case No. DCPD 96-12367.
Hy's Loan Office, Incorporated, a Possible holder of an interest pursuant to
Minnesota corporation judgment against Deborah Johnson
acquired in Case No. DCT J 97-10977.
Mutual Service Casualty Insurance Possible holder of an interest pursuant to
Company, by merger now known as judgment against Debra Johnson acquired
Country Mutual Insurance Company, an in Case No. DCT J 0018075.
Illinois corporation
Centerpoint Energy Resource Corp., a Possible holder of an interest pursuant to
Delaware corporation, dba Minnegasco Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
A-3
Name Nature of Interest
Northern States Power Company, a Possible holder of an interest pursuant to
Minnesota Corporation, dba NSP Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
U.S. West now known as Qwest Possible holder of an interest pursuant to
Corporation, a Colorado Corporation Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
Marvin F. Johnson, dba Tenant
Market Research Associates
AIR CARE-GO, INC., Tenant
a Minnesota corporation
City of Richfield Special Assessments and Easements, if
any.
County of Hennepin Real Estate Taxes
All other parties unknown, together with Any right, title or interest in the Subject
unknown heirs or devisees and spouses, Property
if any
A-4
Exhibit B
This is a mediated settlement agreement ("Agreement") as of February 21,2006
between the City of Richfield Housing and Redevelopment Authority ("HRA") and
Marvin and Deborah Johnson and AIR CARE-GO (collectively "Johnson").
Recitals:
The HRA has commenced a condemnation action, Court File 27-CV-05-18463
("Action").
In the Action, the HRA is seeking to acquire the real property owned by the Johnsons
identified in the Petition as Parcels 1, 2 and 3 ("Property"). The Johnsons are
challenging the Petition and the HRA's right to condemn the Property.
The HRA and the Johnsons ("Parties") desire to settle the Action in accordance with the
terms of this Agreement.
Now, therefore, for good valuable and sufficient consideration, the Parties agree as
follows:
1. The HRA will pay to the Johnsons the total sum of $675,000 ("Settlement
Sum") as the fair market value and just compensation due and owing for the
land, building and fixtures that comprise the Property upon providing
marketable title to the Property subject to easements of record as of the date
hereof.
2. The HRA will pay the Settlement Sum no later than April 1, 2006 (less the
sum set forth in paragraph 3 below).
3. From the Settlement Sum, the HRA shall deposit $30,000 with the Court (the
"Deposit") to be paid out upon the vacation of the Property by the Johnsons in
accordance with paragraph 8 below.
4. Provided that payment of the Settlement Sum is made the following shall
occur:
a. The Parties will stipulate that the Court may enter an order authorizing
title to the Property to transfer to the HRA upon the payment of the
Settlement Sum and the Deposit. Thereafter title shall transfer as
provided for in Chapter 117 of the Minnesota Statutes. The HRA and the
Johnsons will work on a mutually acceptable Court Order granting the
HRA's Petition.
b. The Johnsons shall vacate from the Property no later than November 1,
2006, provided that, in their sole discretion, the Johnsons may vacate
earlier upon 48 hours written notice to the HRA ("Vacation Date").
Nothing contained herein shall be construed as requiring the Johnsons to
vacate prior to November 1, 2006. The HRA will make a diligent effort to
obtain the necessary approvals to permit the Johnsons to remain until
November 15, 2006. If the HRA is able to obtain such approvals, the
Vacation Date shall be November 15, 2006 or such earlier date as the
Johnsons may vacate in their sole discretion ("Extended Vacation Date").
5. From March 1, 2006 through the Vacation Date, the Johnsons shall pay to the
HRA rent in the sum of $200.00 per month ("Rent"). The Rent shall be paid
by the fifth business day of each month. If the Johnsons elect to vacate
earlier than November 1,2006 (or November 15,2006) as set forth above in
paragraph 4, Rent shall abate.
6. For as long as they are occupants of the Property, the Johnsons shall
maintain any existing insurance in place and shall pay all utilities necessary
for the Property.
7. The Johnsons shall have no responsibility for any special assessments levied
against the Property from and after the date of this Agreement.
8. Provided that the Johnsons vacate the Property by the Vacation Date (or the
Extended Vacation Date), and pay all rent and utilities due through the date of
vacation, the HRA shall stipulate that the Deposit plus interest if any shall be
paid to the Johnsons.
9. In recognition that the buildings on the Property will be demolished, the
Johnsons shall not be obligated to perform any repair or maintenance of the
Property from and after the date of this Agreement, except as required by law
to protect health and safety.
10. Provided that the Settlement Sum is paid by the HRA as set forth above, the
Johnsons waive any and all claims for compensation due and owing as a
result of the HRA's condemnation of the Property. Nothing contained herein,
however, shall be construed as a release or waiver of any claim that the
Johnsons may have for relocation expenses under Minnesota Statutes
Chapter 117 and the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, United States Code, title 42, sections 4601
to 4655, as amended by the Surface Transportation and Uniform Relocation
Assistance Act of 1987.
11. The HRA waives any and all claims it may have against the Johnsons arising
from or relating to the Property.
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12. This agreement is subject to approval of by the Board of Commissioners of
the HRA on or before February 27,2006 or it shall be void. In the event the
Agreement is not approved on or before February 27,2006 the parties shall
jointly request the Court to continue the March 13, 2006 trial date to a
mutually agreeable date.
13. Each of the parties shall pay their own attorneys fees and costs.
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Deborah H. Johnson
Marvin F. Johnson
AIR CARE-GO, INC.
by Marvin F Johnson, President
Malkerson Gilliland Martin LLP
by Howard A. Roston (260460)
The Housing and Redevelopment
Authority in and for the City of Richfield
~ ,~
Executive Director and
The Housing and Redevelopment
Authority in and for the City of Richfield
by , its Chair
(Approved by HRA Resolution
No. )
Kennedy & Graven, Chartered
by Robert J. Lindall (63277)
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